How much deposit for custom furniture, and how to set a payment schedule

This guide is for makers who build furniture and cabinetry to order and need to decide how much to take up front. It covers what a deposit is for, the ranges other makers report, staged schedules and how to talk about money without awkwardness.

It also touches on refunds and consumer law. That part is general information, not legal advice; rules differ between countries and states. If you sell to consumers, check the rules where your clients live or ask a local adviser.

If you have not settled your price yet, start with how to price custom furniture.

Key takeaways

• A deposit does three jobs: it pays for materials, it books a slot in your schedule, and it confirms the client is committed.
• On the Fine Woodworking forum, makers commonly report taking a third to a half up front, and at least enough to cover materials.
• For fitted work, staged schedules such as 50% at order, 40% before finishing or delivery and 10% on completion are reported on the WoodWeb forum.
• Some luthiers take a separate booking deposit for a waiting-list place, for example the greater of £350 or 15%.
• Calling a deposit "non-refundable" does not settle the question: UK and EU unfair terms law lists clauses that keep consumers' payments without equivalent terms for the trader as potentially unfair.
• Approve the design first, then sign the agreement and take the deposit.

What a deposit is for

Materials. Timber, veneer and hardware for a commission are bought for that client. If the job stops, you may be left with stock cut to sizes nobody else wants.

A slot in your schedule. A small studio can run only a few builds at once. When you accept a commission, you turn other work away.

Commitment. A payment turns an interested enquiry into an order. One maker on Fine Woodworking puts it plainly: use deposits "to qualify clients and schedule work".

What makers report

There is no survey of deposit sizes for custom furniture that we could find. What exists is practice shared by makers in public forums. Treat it as a range to think with, not a standard.

Practice	Where it is reported
A third to a half up front, often half	Fine Woodworking forum, 2004 to 2005
At least enough to cover materials	Fine Woodworking forum, 2004 to 2005
50% at order, 40% before finishing or delivery, 10% on completion	WoodWeb cabinet and millwork forum, 2006
Booking deposit for a waiting-list place: greater of £350 or 15%	Dodd Lutherie terms, 2026

On the Fine Woodworking thread, one maker writes "1/3 to 1/2 is standard on a decent job". Another always asks for "1/2 up-front to cover the material". On WoodWeb, a cabinetmaker describes "50% up front, 40% when the job goes to finish, and 10% upon delivery".

These threads are old and mostly North American. Your costs, market and law may differ.

Staged schedules for fitted and larger work

For built-in or fitted pieces, a staged schedule ties payments to visible progress. A typical shape:

Stage	Share	Trigger
Deposit	50%	Signed agreement after design approval
Second payment	40%	Piece built, before finishing or delivery
Final payment	10%	Installation complete

A larger number of stages can suit long builds. Keep each trigger clear enough that you and the client agree when it has happened. Progress photos help with this, see client updates during a build.

Booking deposits for waiting lists

Makers with long queues sometimes take a smaller booking deposit to hold a place, then a larger build deposit when work starts. Dodd Lutherie, a UK luthier, publishes terms with a waiting-list deposit of £350 or 15% of the guide price, whichever is greater. The same terms also give a 30-day cooling-off period. Being clear about both is what makes such a policy easy to accept.

Refundable or non-refundable

This is the part most makers worry about. Again: this is general information, not legal advice; rules differ between countries and states.

The right to cancel and made-to-order goods

In the EU and the UK, consumers usually have a right to withdraw from distance and off-premises contracts. Both regimes exclude goods "made to the consumer's specifications or clearly personalised". This is Article 16(c) of the EU Consumer Rights Directive and regulation 28(1)(b) of the UK Consumer Contracts Regulations 2013. Whether a given piece counts as made to specification depends on the facts.

Unfair terms

Separately, unfair terms law can limit what you keep when a client cancels. The UK Consumer Rights Act 2015 lists, as terms that may be unfair, those that let a trader keep sums paid by a consumer who cancels without giving the consumer equivalent compensation if the trader cancels. It also lists terms requiring a "disproportionately high sum in compensation". The EU Unfair Terms Directive has the same items in its annex.

In practice, a deposit that roughly matches your real losses, such as materials bought and work done, is easier to defend than one that does not.

United States

In the US, rules vary by state. The FTC's Cooling-Off Rule gives buyers three business days to cancel certain sales made at their home. Some states also regulate deposits in particular trades. California, for example, caps down payments on home improvement contracts at $1,000 or 10% of the price, whichever is less, and restricts progress payments. That may matter for fitted work. Check which rules apply to you.

Sequencing: design, agreement, deposit

1. Agree the design: drawings, dimensions, timber, finish and any samples.
2. Fix the price for that design.
3. Send a written agreement.
4. Take the deposit once the agreement is signed.
5. Order materials and book the build.

Taking a deposit before the design is fixed creates arguments later about what the money was for. If design takes real time, charge a design fee instead and credit it to the order.

Change orders

Changes after approval are normal. Handle each one the same way: write down the change, the new price and the new delivery date, and get the client's agreement in writing before you start. If a change adds materials, consider a further payment at that point.

What to write in the agreement

• The approved design, by reference to dated drawings or a specification.
• The total price and what it includes: delivery, installation, finish.
• The deposit amount, what it covers and when it is due.
• The payment schedule, with a clear trigger for each stage.
• The estimated completion date, and what happens if it moves.
• How changes are agreed and priced.
• What happens if the client cancels, and what happens if you cannot complete.
• When ownership passes, for example on final payment.
• Natural variation in timber colour and grain.

Have a local adviser look over your template once. It costs less than one dispute.

How to talk about the deposit

Say it early, in the first price conversation, so it is never a surprise. Explain what it pays for: "The deposit covers the timber and holds your slot in the schedule." Keep the tone matter-of-fact. Most clients who commission furniture expect to pay something up front.

Send a receipt and confirm the start date the same day. If the start moves, tell the client before they have to ask.

Sources

• up front money, Fine Woodworking forum: makers reporting one-third to one-half deposits and covering materials
• Deposits and Payment Schedules for Cabinet Jobs, WoodWeb (2006): 50/40/10 staged schedules for fitted work
• Terms and conditions, Dodd Lutherie: waiting-list deposit of £350 or 15% and a 30-day cooling-off period
• Directive 2011/83/EU, Article 16: exception to the withdrawal right for goods made to the consumer's specifications
• Consumer Contracts Regulations 2013, regulation 28: the UK equivalent exception
• Consumer Rights Act 2015, Schedule 2: terms that may be regarded as unfair, including keeping sums paid
• Directive 93/13/EEC, Annex: EU list of potentially unfair terms on retained sums and compensation
• Cooling-Off Rule, Federal Trade Commission: three business days to cancel certain sales made at home
• Progress payment restrictions, CSLB industry bulletin: California limits on down payments and progress payments for home improvement contracts (November 2022)